TWO councils in Wales are facing a legal challenge over the closure of cockle beds, after claims that it has cost shellfish processors and gatherers millions of pounds in lost income.

Kershaw's of Liverpool employs 300 at its processing plant in Southport - but the problems plaguing the Burry Inlet cockle industry over the past three years have forced the company to close its South Wales operation.

It still remains one of the big players in the shellfish processing business and continues to take supplies of the inlet's cockles.

But the company, which has also closed a processing unit at Leigh-on-Sea, has mounted a legal challenge against Swan- sea City and Carmarthenshire County Councils, the two authorities which issue closure notices for the beds, because of the controversy surrounding the Food Standards Agency's testing methods to detect the presence of diarrhoeic shellfish poisoning.

The licensed gatherers dispute that there has ever been anything wrong with the cockles, even though the beds have been closed for about 18 of the last 36 months.

And Rory Parsons, managing director of the Burry Port-based shellfish packers and pickle manufacturers LA Parsons and Sons, backed their claim by insisting yesterday, "What must be remembered is that nobody has been made ill through eating these cockles.

"Because of the time factor involved, the product is always consumed before the test results come through - and that is the very frustrating aspect of all this."

Mr Parsons said his company, which employs 25 people, would not be making a legal challenge, despite the fact that its overheads had rocketed because of the constant closure of the cockle beds.

"We are watching the situation closely. If Kershaw's are successful then there is no reason why we shouldn't make a financial claim - because we have all been affected."

The testing of the cockles is carried out by local councils on behalf of the Agency, but a spokeswoman declined to comment on the method used.